New technologies often encounter friction when they run up against legacy infrastructure, especially with regards to global payment methods. This is more evident now than ever as traditional financial systems are not fit-for-purpose when it comes to meeting the needs of crypto- and blockchain-powered companies.
Exchanges, OTC desks and other crypto companies often face challenges around liquidity, lengthy settlement times, and limited off-ramp options due to outdated cross-border payment systems. Each of these increasingly weigh on the efficiency and affordability of the global transactions vital to their success.
In a recent report, Ripple explores how these crypto businesses can deploy real time cross-border payments and tap into a global payout network to bridge the gap between the legacy payment system and digital asset infrastructure to unleash growth.
Addressing Cross-Border Payment Challenges
In the rapidly evolving world of crypto, time is of the essence and customers expect real time payments. To meet their demand, crypto businesses need fast, flexible global payouts and instant settlement that can ensure adequate liquidity to support business operations and customer needs.
Unfortunately, traditional financial systems struggle to match the speed, flexibility and transparency offered by blockchain technology. This discrepancy results in poor customer experience and operational burdens. Moreover, the limited availability of payouts in a customer’s preferred local currency complicates cross-border transactions, adding to frustrations with delays and expenses posed by the correspondent banking network.
Establishing a global network of payout partners requires substantial resources, and many traditional financial institutions cannot off-ramp widely used digital assets like stablecoins to fiat currencies. Those that do often impose high foreign exchange rates, transaction fees, and fiat payout fees, making it costly for crypto businesses to offer flexible fiat payouts to their customers.
Global Payments at the Speed of Crypto
Ripple Payments leverages the power of the digital asset XRP and the XRP Ledger—an enterprise-ready, secure, scalable, and proven blockchain—to enable the speed, access and cost savings that crypto businesses need.
Transactions settle in seconds, allowing businesses to respond swiftly to market demands and provide an exceptional customer experience. And with 24/7/365 availability, Ripple Payments supports transactions on weekends, holidays and outside traditional bank hours, giving crypto businesses a competitive edge.
Ripple Payments also reduces costs by minimizing the number of counterparties in the international payment flow and locking in quotes before initiating payments. With this modern payment method, this cost efficiency allows crypto businesses to offer competitive pricing to their end-users.
Additionally, by connecting to Ripple’s global payments network through a single API or UI, businesses can streamline operations while providing stablecoin and other digital asset off-ramps to a variety of currency payouts. This payment method not only enhances the customer experience but also builds long-term loyalty and strengthens a company’s reputation.
The Power of Ripple Payments
Ripple Payments is a comprehensive payment solution drawing on deep expertise in both traditional finance and crypto to provide faster, more affordable and expansive international payments. By leveraging superior payment options, crypto businesses can grow their reach, improve market responsiveness and reduce exposure to FX and crypto volatility.
To learn more about how Ripple can support your unique crypto business, download the full report here.
